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Showing posts from January, 2023

Delayed Implementation of $600 threshold for 1099-K (Venmo, CashApp, PayPal, Etsy, etc.)

In 2022 the threshold for reporting payments received through a third-party platform (Venmo, PayPal, CashApp, etc...) was reduced from $20,000 to $600. However, on December 23, 2022, the IRS announced that the decreased threshold would be postponed until the 2023 tax year. The change was delayed until 2023 in order to provide payment platforms more time to implement this into their systems to ensure accurate filing of Forms 1099-K.  The big question is "Will this affect me?" If you sell goods or services and use third-party payment services to receive money, then you should expect to receive a 1099-K that reports your income to the IRS. This is not a change in how taxes are assessed since the income is taxable even if no 1099-K was received in the past, but instead is a change in how the money is reported to individuals and the IRS.  If you do not sell goods or services on a third-party payment service and all your transactions are for reimbursements or personal gifts, then y

2023 Standard Mileage Rates

  The IRS has issued 2023 standard mileage rates. These rates begin on January 1, 2023, and apply to the use of a car, van, pickup or panel truck. 65.5 cents per mile for business miles driven (up from 62.5 cents during the second half of 2022). 22 cents per mile for medical purposes (up from 18 cents in 2022). 14 cents per mile driven in service of charitable organizations (no change from 2022). More information is available on the IRS's  website .